A class action lawsuit has been initiated against the prediction market platform Kalshi, focusing on alleged failures in disclosing a death carveout in the market concerning Ali Khamenei’s position as Supreme Leader. Plaintiffs claim that the platform did not adequately inform users about the implications of this policy, which they describe as “predatory” and unfair.
Following the confirmation of Khamenei's death, Kalshi voided trades, leading to accusations that the market did not resolve properly. Co-founder Tarek Mansour stated that the company does not facilitate markets directly linked to death and asserted that their rules aim to prevent profit from such situations.
Users affected by the carveout were promised reimbursements based on the last traded price prior to the confirmation of Khamenei's death. However, plaintiffs criticized the lack of transparency regarding the methodology used for these calculations. Mansour defended the company, emphasizing that Kalshi did not profit and covered all losses incurred by users.